City Trustees - part of Mattioli Woods



News and Media

03 December 2012

Mattioli Woods Group earmarks £750k for City Trustees to meet new FSA SIPP capital adequacy rules

Financial strength and the maintenance of adequate capital resources is a key area currently under review by the Financial Services Authority (FSA). To meet the FSA's new proposals for increased capital adequacy for SIPP operators, Mattioli Woods plc, of which City Trustees is a subsidiary, has revealed it will need to set aside £750,000.

At the start of November, the regulator proposed a hike to the amount of capital a SIPP operator would have to hold, with the absolute minimum increasing from £5,000 to £20,000, and the level of assets under administration also taken into account.

In addition, the FSA proposed there would also be an additional requirement for providers that hold 'non-standard' asset types such as unregulated collective investment schemes and commercial property.

Iain Herbertson, Managing Director from City Trustees commented:

"It is important clients can be confident their chosen provider is able to provide a long-term solution and will remain in business, avoiding any unnecessary future costs or disruption to their retirement planning".

"Being part of the Mattioli Woods plc group ensures City Trustees is in a strong position to meet increased regulatory demands."

The move follows much recent press speculation about the start of wider consolidation within the SIPP market, after some well-known operators have sought to raise funds or initiate a sale, to no avail. This is a result of a number of factors including the lower banking margins available to operators due to low interest rates, unrealistic charging structures, increased regulatory costs, and increasing capital resource requirements.

A summary of Mattioli Woods plc's financial results over the past few years can be viewed on the Group's corporate website www.mattioli-woods.com, which demonstrates a consistent record of profitable growth and a strong balance sheet.

 

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City Trustees is a trading name of Mattioli Woods plc. For news updates on the Group, please visit our central News & Media on the Group website.